The Money Wise guys are back with a brand new episode this week. As always, they begin with a break down of Wall Street’s performance this past week, with the Dow Jones dropping 1.86%, the S&P 500 declining 1.94%, and the NASDAQ falling 2.34% for the week. Year-to-date, all three indices remain slightly negative, with the Dow down 1.42%, the S&P 500 down 0.91%, and the NASDAQ down 0.77%. The conversation highlights Friday’s surprisingly strong jobs report, which revealed 256,000 new jobs created in December—far exceeding expectations of 155,000. The unemployment rate ticked down to 4.1%, and broader measures of underemployment improved as well. However, average hourly earnings rose only 0.3%, slightly below expectations, providing a mixed signal for inflation.
The guys also explore how strong employment data, which should traditionally boost markets, instead triggered a "perversion" of market behavior, as concerns over Federal Reserve policy fueled a sell-off. Thet discuss how robust jobs numbers cast doubt on a potential recession while raising questions about future rate cuts or even increases. Despite the market’s reaction, the Money Wise guys emphasize the overall strength of the economy and how these numbers challenge the narrative of a looming downturn. Tune in for insights on the jobs report, market performance, and what this means for 2025.
A Surprisngly Strong Jobs Report
The latest jobs report revealed a surprisingly strong working market. Broader measures of underemployment also improved, signaling a robust labor market. Interestingly, average hourly earnings rose just 0.3%, falling short of the anticipated 0.4% increase, which eased some concerns about wage-driven inflation. A report like this is crucial for the markets because it reflects the overall health of the economy and influences Federal Reserve policy decisions. Strong job growth and low unemployment suggest a resilient economy but may prompt the Fed to reconsider its approach to interest rate cuts, leading to increased market volatility.
In the second hour, the Money Wise guys share the Best Investment Advice Ever. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.
